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APC REVISION > Local Taxation > Flashcards

Local Taxation Flashcards

1
Q

Key Legislation

A

Local Government and Finance Act 1988

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2
Q

Definition of Rateable Value and where is it found

A

Local Government and Finance Act (lgfa) 1988 Schedule 6 Paragraph 2
* The amount equal to what a property would reasonaly be expected to be let from year to year based on 3 assumptions (seperate card)

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3
Q

What are the 3 assumptions of Rateable Value

A
  1. Lease begins at AVD
  2. Reasonable state of repair
  3. FRI lease with T paying all expected rates and taxes
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4
Q

Material Day

A

Day on which physical factors are taken into account - sch 6 (paragraph 2. 7) LGFA 1988.
6 Factors to Consider/ mentioned matters
A. matters affecting physical state or enjoyment of the hereditament;
B. mode or category of occupation
C. quantity of minerals / substances extracted
D. quantity of refuse permanently deposited on hereditament
E. matters affecting physical locality in which hereditament is situated
F. Use or occupation of surrounding properties

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5
Q

Effective Date

A

The date at which liability begins

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6
Q

Antecedent Valuation Date (AVD)

A

Date property is valued from and economic factors are considered, 2 years prior to beginning of new rating list

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7
Q

What are the 7 Hypothetical Tenancy Assumptions

A
  1. Property is Vacant
  2. Available to let on an annual tenancy
  3. FRI basis
  4. Reasoanable repair (L puts property into reasonable repair prior to start of tenancy if economically reasonable to do so)
  5. Tenant responsible for rates
  6. Value as it stands/current use in line with Rebus Sic Stantibus
  7. No major alterations
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8
Q

What is the role of an Expert Witness

A

A duty to the court.

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9
Q

What is the role as Advocate

A

A duty to the client (the VOA).

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10
Q

Case Law for Heirarchy of Evidence and heirarchy principles

A

Lotus & Delta Ltd v Culverwell and Leicester City Council 1976
1. Subject rent should be starting point
2. Closer comparables are to time (AVD), subject and conditions, the more weight attached
3. Other rents should be used where available
4. Other VO assessments of comparable properties
5. Value formed on actual rent and degree of comparability of evidence
6. Where no comparable evidence, subject given most weight

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11
Q

What are the 4 tenants of Rateable occupation and relevant case law

A
  1. Actual
  2. Beneficial
  3. Exclusive
  4. Transient (degree of permanence)

John Laing & son v Kingswood Assessment Committee

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12
Q

What are the 4 tenants of Rateable occupation and relevant case law

A
  1. Actual
  2. Beneficial
  3. Exclusive
  4. Transient (degree of permanence)

John Laing & son v Kingswood Assessment Committee

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13
Q

How is a hereditament identified

A

Single rateable occupier
In a billing authority
seperate occupation
single geographical unit
single use
single definable position

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14
Q

Key Case Law for AVD

A

K shoe Shops v Hardy and Westminster City Council - to ensure that there is consistency
Ladies Hosiery V West Middlesex Assessment Comittee 1932 - Uniformity does not equal correctness
Special eyes v delegate - timing of evidence with most weight on rents closest to AVD then those before AVD then those afterwards

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15
Q

What is a hereditament and key case law

A

Unit of Assesmnet which would fall under a rating list category and is liable for rates
Gilbert V Hickenbottom followed by Woolway v Mazars and PICO act

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16
Q

What are the changes to the Non Domestic Rating Act

A
  1. Duty to notify of any changes to a property (within 60 days of change)
  2. Revaluations every 3 years not 5 (from 2026)
  3. Improvment relief
  4. Downward transition relief has been scrapped
  5. Changes to MCC
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17
Q

What are the exemptions to business rates and where found

A

o Agricultural land and buildings, fish farms
o Buildings used for training and welfare of disabled persons
o Buildings registered for public religious worship or church halls
o Sewers and property of drainage authorities
o Swinging moorings
o Parks and recreational grounds
o Certain property of Trinity House
Schedule 5 LGFA 1988

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18
Q

What are the Business Rates reliefs and where are they found

A

Schedule 47 (3) of LGFA 1988
1. Agricutural relief
2. Small business rates relief
3. Enterprise zone relief
4. Charitable rate relief
5. Trasitional relief

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19
Q

What is meant by the term locality

A

Taken to mean the area within sufficient evidence to produce a personally expected when an outside which the rent might be different

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20
Q

What is not rated according to schedule 5 Local government and finance act 1988?

A

Domestic property, parks, religious buildings, agricultural land, agricultural buildings, fish farms, lighthouses.

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21
Q

What is an IRI lease?

A

Internal repair and insuring is liable to tenant, external repairs is landlords, may be claimed back via a service charge making it effective FRI.
Usually higher rent than FRI as the tenant is responsible for less than in fri

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22
Q
A
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23
Q

Which act regulates CCA?

A

Non-Domestic Rating (Alteration of Lists and Appeals) (England) Regulations 2009.

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24
Q

When does tenancy begin?

A

Tenancy begins on the day the RV is assessed.

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25
What does the tenant pay for?
The tenant pays all usual taxes and repairs.
26
What are the challenge grounds?
Compiled List Error, Rv is wrong, MCC, Effective date is wrong, Deletion, Split/Merger, Address is wrong, Description is wrong.
27
What must a challenge include?
Name, Address, Contact details, Grounds of proposal, Evidence, Explanation, Identify alteration sought, Effective date, Date proposal received.
28
29
30
What are the Challenge Grounds?
The Challenge Grounds include: - Compiled List Error - RV is wrong - MCC - Effective date is wrong
31
What must a challenge include?
A challenge must include: - Name - Address - Contact details - Grounds of proposal - Evidence - Explanation - Identify alteration sought
32
What is the effective date in a proposal?
The effective date is the date the proposal is received.
33
Where can the definition of Rateable Value be found?
The definition of Rateable Value is found at Schedule 1 paragraph 2 of the LGFA 1988.
34
What is the definition of Rateable Value?
The RV of a wholly non-domestic hereditament of which none is exempt from local NDR is the amount equal to the rent that it is estimated the hereditament might reasonably expect to let from year to year on three assumptions: 1. Tenancy begins on the day that RV is to be assessed. 2. Hereditament is in a reasonable state of repair. 3. Tenant pays all usual taxes.
35
What is improvement relief?
A tax relief available for making certain improvements to property.
36
How long does improvement relief last?
One year.
37
When does improvement relief begin?
When you complete your improvements.
38
True or False: Improvement relief is permanent.
False.
39
Fill in the blank: You might get improvement relief if you make certain _______ to your property.
[improvements]
40
41
42
What must improvements do to be eligible?
Improvements must increase the ‘rateable value’ of your property.
43
When must the improvements be completed?
Improvements must be completed on or after 1 April 2024.
44
What are the two conditions for improvements to be eligible?
Improvements must either increase the size of your property or add new features or equipment.
45
What are some examples of new features or equipment that can be added?
Examples include heating, air conditioning, or CCTV.
46
What is included in improvement relief certificates
how the improvement affects the property’s rateable value when the relief ends Send to ratepayer & council
47
48
49
What happens when you get a second property?
You’ll keep getting any existing relief on your main property for 12 months.
50
Can you still get small business rate relief on your main property after acquiring a second property?
Yes, if none of your other properties have a rateable value above £2,899 and the total rateable value of all your properties is less than £20,000 (£28,000 in London).
51
What is the rateable value limit for other properties to qualify for small business rate relief?
None of your other properties should have a rateable value above £2,899.
52
What is the total rateable value limit for all properties to qualify for small business rate relief?
The total rateable value of all your properties must be less than £20,000 (£28,000 in London).
53
What is charitable relief & where can it be found
Schedule 5 LGFA 88 You could get charitable rate relief if your property is mainly used for charitable purposes. To be eligible, the property must be used by either: a charity, or the trustees of a charity a community amateur sports club (CASC)
54
55
What is charitable rate relief?
Charitable rate relief gives you up to 80% off your business rates bill.
56
What is discretionary relief?
Discretionary relief is when your local council may top up the discount so that you do not have to pay business rates.
57
What is transitional relief
Transitional relief limits how much your bill can change each year as a result of business rates revaluation. Following the NDR ACT 2023 downward transition is scrapped
58
59
K shoe Shops v Hardy and Westminster City Council - to ensure that there is consistency Ladies Hosiery V West Middlesex Assessment Comittee 1932 - Uniformity does not equal correctness Special eyes v delegate - timing of evidence with most weight on rents closest to AVD then those before AVD then those afterwards
60
61
Tell me about special eyes v delegate
Specialeyes v Felgate 1994 – Relates to Zone A rent of a shop, subject rent is part of a larger transaction therefore has less weight. Determined best rent was close to AVD. Rents before showed trend. Rents after AVD only considered last.
62
What is Woolway v Mazars?
Woolway v Mazars 2012 relates to the 2nd & 6th floors of an office, occupied by the same tenant. The Supreme Court deemed them as separate due to not being contiguous or essential to one another (functional).
63
What is PICO?
Property in Common Occupation Act 2018 – Reversed Mazars, assessments contiguous either vertically or horizontally can be considered as one assessment. Space owned by landlord are to be considered contiguous.
64
What is the Laing v Kingswood case?
Building contractors for aerodrome, 2 years of construction, had offices, garages and canteen – which all met the 4 rateable occupation ingredients.
65
66
What is the Scottish and Newcastle v Williams case?
Scottish and Newcastle v Williams (2000): Public House within shopping centre, underwent physical changes to become pub - beyond the extent of rebus therefore is not the same mode or category as a shop, and cannot be valued as such.
67
What is the Fir Mill Ltd v Royton case?
Fir Mill Ltd v Royton UDC & Jones (1960): Cotton mill must be valued as a factory, not a cotton mill.
68
What case founded the AVD?
K Shoe Shops Ltd v Hardy (1983): Oxford street and regent street shops with differing rateable value due to valuation date.
69
What case law relates to Material Day?
Barlow & Sons Ltd v Wellingborough Council & James 1980: New shopping mall affected values, had they been there at the AVD. ## Footnote RE The Appeal of Kendrick 2009: 9/11 - London airport lounge, nothing physically manifested in the locality to affect the property values.
70
What other legislations relate to Local Taxation?
Non-Domestic Rating (Alterations of Lists and Appeals) (England) (Amendments) Regulations 2017. ## Footnote The Valuation Tribunal for England (Council Tax & Rating Appeals) (Procedure) (Amendment) Regulations 2017.
71
What case relates to the tone of the list?
Obrien v Harwood 2003.
72
What is Cardtronics v Sykes 2020 case about?
Cardtronics v Sykes 2020: Internal and External ATMs to be treated the same. Should not be separated as retailer remained in paramount control.
73
What case law relates to locality?
K Shoe Shops v Hardly 1983: Locality to mean an area within sufficient evidence to produce a reasonably expected rent and outside locality in which the rent may be different.

APC REVISION (15 decks)

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